Acc 491 - Textbook Assignment

Textbook Assignment

ACC/491

11/30/15

Textbook Assignment

1-23

(Organizations associated with the public accounting profession) Several private and public sector organizations are associated with the profession. Listed below are activities pertaining to these organizations.

1. License individuals to practice as CPAs.

• State Boards of Accountancy

1. Promulgate GAAP.

• Financial Accounting Standards Board (FASB) and Governmental Accounting Standards Board (GASB)

1. Issue Statements on Auditing Standards.

• American Institute of Certified Public Accountants (AICPA)

1. Regulate the distribution and trading of securities offered for public sale.

• Securities and Exchange Commission (SEC)

1. Establish its own code of professional ethics.

• AICPA, State Boards of Accountancy, and the State Societies of CPAs

1. Issue Statements of Financial Accounting Standards.

• FASB

1. Impose mandatory continuing education as a requirement for renewal of license to practice as a CPA.

• State Boards of Accountancy

1. Issue disclosure requirements for companies under its jurisdiction that may exceed GAAP.

• SEC

1. Issue auditing interpretations.

• AICPA

1. Cooperate with the AICPA in areas of mutual interest such as continuing professional education and ethics enforcement.

• State Societies of Certified Public Accountants

1. Take punitive action against an independent auditor.

• State and Federal Courts

1. Establish accounting principles for state and local governmental entities.

• GASB

1. Establish GAAS.

• AICPA

1. Suspend or revoke a CPA's license to practice.

• State Boards of Accountancy

1. Establish quality control standards.

• International Auditing and Assurance Standards Board (IASSB)  and AICPA

1. Operate as proprietorships, partnerships, or professional corporations.

• Practice Units

1. Issue government auditing standards.

• General Accounting Office (GAO)

1. Administer federal tax laws.

• Internal Revenue Service (IRS)

References

Boynton, W.C., & Johnson, R.N. (2006). Modern Auditing (8th ed.). Retrieved from The         University of Phoenix eBook.